Lecture 6 (19) Chapter 2: Fees -TER, TIC, and Why 1% a Year Is a Bigger Deal Than It Sounds

You've seen TER and TIC mentioned throughout this chapter without a full explanation. This lecture makes them concrete because a fee difference that looks trivial on paper becomes genuinely large money over a real investing lifetime.

The Terms, Precisely

• TER (Total Expense Ratio): the annualised percentage of a fund's assets consumed by running costs: management fees, audit, trustee fees, VAT. This is usually measured over the trailing one and three years.